What’s the First RMD Year for Those Born in 1959?

Wednesday, September 18, 2024

By Ian Berger, JD
IRA Analyst

If you were born in 1959, what is the first year that you must start taking required minimum distributions (RMDs)? That would seem like an easy question to answer, but because of a snafu by Congress, it isn’t quite so clear.

For many years, RMDs started at age 70 ½. Then, in the 2019 SECURE Act, Congress postponed the RMD age to 72 for people born on or after July 1, 1949. In the 2022 SECURE 2.0 Act, Congress delayed the first RMD year even further with the following language:

It didn’t long for commentators to notice a drafting error in this rule. The glitch caused anyone born in 1959 to have two first RMD ages.

Example: Jason Alexander, who played George in Seinfeld,was born on September 23, 1959. Jason is covered by the first part of the rule, which would make 73 his first RMD age. But he is also covered by the second part, which would also make 75 his first RMD age.

Obviously, even George cannot have two RMD ages, so this error had to be fixed. Back in May 2023, four high-ranking members of Congress from both parties sent a letter to the IRS promising they would introduce legislation to correct this mistake and several others in SECURE 2.0.

But guess what? This promised corrective legislation hasn’t happened yet. So, the IRS stepped into the breach and decided it would fix the 1959 “ambiguity.” In the proposed RMD regulations issued on July 18, 2024, the IRS said the SECURE 2.0 rule should work as follows:

  • The first RMD age is 73 for those born on or after January 1, 1951 and before January 1, 1960; and
  • The first RMD age is 75 for those born on or after January 1, 1959 January 1, 1960.

With this fix, those born in 1959 would only have one RMD age: 73. And the RMD ages would be as follows:

          Age 70 ½        Born before July 1, 1949
          Age 72            Born on or after July 1, 1949 and before January 1, 1951
          Age 73            Born on or after January 1, 1951 and before January 1, 1960
          Age 75            Born on or after January 1, 1960

However, it’s not entirely clear whether the IRS has the authority to make this correction. Earlier this year, the U.S. Supreme Court issued the Loper Bright Enterprises v. Raimondo decision, which gives judges more power to overturn IRS (and other governmental) regulations. Based on that decision, it is possible a judge could decide that only Congress has the power to fix its own mistake.

But for now, your best bet is to follow the RMD chart above.

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